Spot and perps DEX named Ethereal proposed to be built on Ethena Network

The Ethena ENA +9.56% community is discussing a new proposal that suggests integrating a decentralized exchange named Ethereal directly into Ethena-related reserve management to become the network’s fully onchain venue for spot and derivative positions backing USDe. The DEX built on the upcoming Ethena Network, according to the proposal.

“We are requesting support from the Ethena community for an integration with Ethereal as a venue for executing hedging transactions,” said the proposal , additionally requesting technical support for Ethereal’s integration with Ethena’s hedging engine.

The proposal, written by “Fells0x,” who is likely a team member of Ethereal, stated that the integration will have mutual benefits, where the exchange could offer a new stream of demand for USDe, as well as more transparency as USDe backing management would be held on-chain.  The Ethereal team also proposed distributing 15% of any potential Ethereal governance tokens to Ethena (ENA) token holders.

Ethereal, an L3 EVM app chain, is set to launch on testnet within the fourth quarter of this year. According to the proposal, the DEX is designed to process one million operations per second with sub-20ms latency. 

“Ethereal is designed to match centralized exchange performance while maintaining complete self-custody and flexibility to support features such as cross-margin, liquidity automation, and portfolio margin,” the proposal added.

In response to the proposal, Ethena Labs wrote on X that it would “shortly” release a snapshot for voting on it, but no specific date has been mentioned.

Last week, Ethena announced its plan to launch a new stablecoin in collaboration with Securitize, a real-world asset tokenization platform. The new stablecoin, called UStb, will be backed by BlackRock’s tokenized U.S. Treasuries fund BUIDL. 

USDe, Ethena’s synthetic stablecoin that launched in February this year, is currently the fifth largest stablecoin by supply, with around $2.55 billion in circulation, according to The Block’s data dashboard . 

Ethena Labs did not immediately respond to The Block's request for further comments.